EU allocates 1.5 billion euros to boost the battery industry

The European Commission has officially launched the new Battery Booster Facility. With up to €1.5 billion from the Innovation Fund, financed by revenues from the European Emissions Trading System (EU ETS), it aims to support the expansion of battery cell production in Europe. For the first time, the Commission is relying on direct support in the form of **interest-free loans**. The goal is to stimulate private investment, accelerate industrial scaling, and strengthen Europe’s competitiveness and strategic autonomy in clean technologies. Eligible projects are those manufacturing battery technologies for electric vehicles, though the produced batteries can also be used in other applications. Production must take place within the European Economic Area (EEA) and achieve a minimum capacity of 10 GWh. The maximum loan amount is **€500 million per project**. According to the Commission, the loan model was deliberately chosen over traditional grants to promote sound capital allocation, enable companies to reach economic viability more quickly, and complement private investment. Evaluations will consider, among other factors, the technical and financial maturity of projects and their contribution to the European economy. The Innovation Fund supports the deployment of innovative net-zero technologies, including battery technologies, and aims to strengthen Europe’s industrial manufacturing capacity